KUALA LUMPUR: The FBM KLCI extended its losses in early trade on Monday, Nov 29, in line with the generally negative sentiment across regional markets still wary of the '85 billion rescue plan for Ireland.
Reuters reported the 16-nation euro zone approved the package, which included an immediate 10 billion euro recapitalisation for Ireland's debt-stricken banks, fearing contagion would strike fellow strugglers Spain and Portugal.
On Bursa Malaysia, the 30-stock FBM KLCI was also weighed by losses at key blue chips, including banks.
At 10am, the index fell 8.41 points to 1,483.64. It had earlier fallen by as much as 18.03 points to 1,474.02.
Market breadth was negative with losers thumping gainers by 406 to 90, while 159 counters traded unchanged. Volume was 232.71 million shares valued at RM351.21 million.
RHB Research Institute Sdn Bhd said it had feared, the market sentiment failed to turn positive even though most investors turned optimistic ahead of the Petronas Chemicals Group Bhd listing last Friday.
It said this was in line with its technical readings that warned of a failure to penetrate the 10-day Simple Moving Average (SMA) would sink the short-term technical reading one notch lower.
It said that with a reversal from the intraday high of 1,500.18 on Friday to end the week at 1,492.05, even lower than the 40-day SMA of 1,495, the FBM KLCI was forecast to head lower in the early part of this week.
Given the 'bearish engulfing' candle on the chart, the index should head towards the recent low of 1,476.8 soon, before falling to the critical level of 1,450, it said in a note Nov 29.
'To reiterate, falling below the 1,450 level will trigger a major corrective wave on the almost 20-month rally on the local market.
'We will turn positive again on the short-term trading sentiment only if we see a surprise reversal of the index movement, back to above both the 10-day and 40-day SMAs. And if not, we will stay negative on the FBM KLCI's short-term outlook,' it said.
At mid-morning on Bursa Malaysia, BAT was the top loser and fell 76 sen to RM44.04; Kulim lost 28 sen to RM12.12, Dutch Lady down 24 sen to RM17.60, United PLANTATION []s down 20 sen to RM17, KLK, Genting and PPB fell 18 sen each to RM19.82, RM10.10 and RM18.18 respectively, Bursa lost 12 sen to RM7.98 and Petronas Dagangan down 10 sen to RM11.06.
Among the banks, Maybank lost six sen to RM8.64, CIMB down two sen to RM8.39, RHB Capital fell eight sen to RM7.92, Public Bank down four sen to RM12.76 and Hong Leong Bank lost 10 sen to RM9.10.
Petronas Chemicals was the most actively traded counter with 27.75 million shares done. The stock fell four sen to RM5.27.
Other actives included Scomi, Pentamaster, KNM Group and Karambunai.
At the regional markets, Japan's Nikkei 225 gave it earlier gains and was up 0.30% to 10,069.38, and Taiwan's Taiex was up 0.46% to 8,350.44.
The Shanghai Composite Index fell 0.74% to 2,850.38, Singapore's Straits Times lost 0.26% to 3,149.72, the South Korean Kospi down 0.24% to 1,897.22 while Hong Kong's Hang Seng Index opened 0.1% lower at 22,865.66.
Reuters reported the 16-nation euro zone approved the package, which included an immediate 10 billion euro recapitalisation for Ireland's debt-stricken banks, fearing contagion would strike fellow strugglers Spain and Portugal.
On Bursa Malaysia, the 30-stock FBM KLCI was also weighed by losses at key blue chips, including banks.
At 10am, the index fell 8.41 points to 1,483.64. It had earlier fallen by as much as 18.03 points to 1,474.02.
Market breadth was negative with losers thumping gainers by 406 to 90, while 159 counters traded unchanged. Volume was 232.71 million shares valued at RM351.21 million.
RHB Research Institute Sdn Bhd said it had feared, the market sentiment failed to turn positive even though most investors turned optimistic ahead of the Petronas Chemicals Group Bhd listing last Friday.
It said this was in line with its technical readings that warned of a failure to penetrate the 10-day Simple Moving Average (SMA) would sink the short-term technical reading one notch lower.
It said that with a reversal from the intraday high of 1,500.18 on Friday to end the week at 1,492.05, even lower than the 40-day SMA of 1,495, the FBM KLCI was forecast to head lower in the early part of this week.
Given the 'bearish engulfing' candle on the chart, the index should head towards the recent low of 1,476.8 soon, before falling to the critical level of 1,450, it said in a note Nov 29.
'To reiterate, falling below the 1,450 level will trigger a major corrective wave on the almost 20-month rally on the local market.
'We will turn positive again on the short-term trading sentiment only if we see a surprise reversal of the index movement, back to above both the 10-day and 40-day SMAs. And if not, we will stay negative on the FBM KLCI's short-term outlook,' it said.
At mid-morning on Bursa Malaysia, BAT was the top loser and fell 76 sen to RM44.04; Kulim lost 28 sen to RM12.12, Dutch Lady down 24 sen to RM17.60, United PLANTATION []s down 20 sen to RM17, KLK, Genting and PPB fell 18 sen each to RM19.82, RM10.10 and RM18.18 respectively, Bursa lost 12 sen to RM7.98 and Petronas Dagangan down 10 sen to RM11.06.
Among the banks, Maybank lost six sen to RM8.64, CIMB down two sen to RM8.39, RHB Capital fell eight sen to RM7.92, Public Bank down four sen to RM12.76 and Hong Leong Bank lost 10 sen to RM9.10.
Petronas Chemicals was the most actively traded counter with 27.75 million shares done. The stock fell four sen to RM5.27.
Other actives included Scomi, Pentamaster, KNM Group and Karambunai.
At the regional markets, Japan's Nikkei 225 gave it earlier gains and was up 0.30% to 10,069.38, and Taiwan's Taiex was up 0.46% to 8,350.44.
The Shanghai Composite Index fell 0.74% to 2,850.38, Singapore's Straits Times lost 0.26% to 3,149.72, the South Korean Kospi down 0.24% to 1,897.22 while Hong Kong's Hang Seng Index opened 0.1% lower at 22,865.66.
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